BBC objectives 2006-2007

We have set five objectives for 2006-2007, some informed by consultation with licence payers around the UK.

1. programme strategy: Ensure that BBC management continues to develop and begins to implement the five year editorial strategy for BBC programmes and services by translating the findings of Creative Future into service strategies and pan BBC proposals:
   
   In Television, continue progress towards the detailed objectives set in 05/06:
   • Reducing the volume of repeats in BBC One peak to below 8.5% in 2006/07 (towards a target of 5% in 2008/9)
   • Continue to increase overall investment in original UK comedy and drama.
   • Refresh BBC One's early evening output, paying particular attention to the lifecycle of programmes or formats.
     
2. driving digital: Ensure that BBC management prepares for digital switchover and drives the market for free-to-air digital television, digital radio and new media whilst continuing to serve the needs of the analogue-only audience by:
   • raising awareness of how the BBC's digital services add value to the overall portfolio
   • improving their availability
   • working in partnership with the commercial sector to drive take-up
     
     
3. value for money: Ensure that BBC management delivers value for money savings whilst retaining quality output. In 2006/07, this will be measured against the following goals:
   • Headcount: Achieving headcount reduction targets of 2,055 in 2006/7, towards the target of 3,763 for the three years to 2007/08.
   • Savings: Making gross cumulative savings of £211 million in 2006/07, which includes new gross savings of £115 million, towards a target of annual gross savings of £355 million by 2007/08 (after three years).
   • Implementation costs: Incurring implementation costs of no more than £148m in 2006/07 from the total of £241m one-off implementation costs included within the three year plan.
   • Business Model: Developing a coherent business architecture which underpins the BBC's transformation.
   • Financial Planning: Implementing a financial plan that ensures the most effective allocation of BBC funds to meet the needs of the licence-fee payer, begins to set targets for continuous improvement and has the flexibility to deal with new audience priorities and cost pressures. In particular:
     • Worldwide to improve return to the BBC by providing double digit growth in underlying profit (i.e. excluding exceptional items) plus ongoing sales growth and to achieve competitive performance levels, delivering a return on sales of at least 10% and EBITDA (earnings before interest, tax, depreciation and amortisation) margin of at least 22%.
     • Net licence fee sales to increase by 1.04%, with evasion falling from 4.7% in 05/06 to 4.6%
       
       
4. impartiality: Ensure that the BBC meets the highest standards of accuracy, fairness and impartiality expected by audiences. In particular, respond to the Governors' independent reviews of impartiality to ensure strong editorial processes and training that deliver high quality, trusted journalism.
   
   
5. accountability: Focus on improving the BBC's accountability to audiences. In particular:
   The BBC Governance Unit to:
   • Develop and conduct a major public survey looking at attitudes towards the BBC, for consideration by the BBC Trust.
   • In readiness for the Trust, work with the Broadcasting Councils and English National Forum to develop an action plan to engage more widely with audiences, build the profile of the Councils, and contribute advice across the range of the BBC's public purposes.

   BBC Management to:

   • Develop new service strategies in response to the Creative Future project ensuring that all audiences are well served and in particular to provide adequate focus on improving perceptions among those audiences less favourable towards the BBC.

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